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1606 Corp. Taps New $20M Line of Credit to Secure First CBD Acquisition

Ryan Allway

March 7th, 2023

News, Top Story

The global CBD industry is expected to grow from less than $10 billion in 2022 to more than $136 billion by 2030, according to Contrive Datum Insights, representing a blistering 38.9% compound annual growth rate over the forecast period.

After securing a $20 million line of credit to roll-up CBD companies, 1606 Corp. (OTC: CBDW) acquired a majority stake in Brio Nutrition, a profitable CBD development and distribution company, on March 6, 2023. The acquisition is the first of at least three planned purchases this year and represents a solid step forward in its plans to become a CBD leader.

A Win-Win Acquisition

1606 Corp. purchased 51% of Brio Nutrition, a profitable CBD development and distribution company. With revenue of roughly $760,000 in 2021, the company has more than 45 CBD products, including gummies, topicals, pet products, and more. These products address everything from stress and anxiety to sleep issues and post-traumatic stress disorder.

“Brio Nutrition is the first of many acquisitions forecasted to close in 2023,” said CEO Greg Lambrecht. “The Brio products we are adding to the 1606 lineup can take advantage of the distribution channels already established. We intend on utilizing the Brio distribution network to introduce Truz Original and CBD Singlz. It’s a win-win.”

The complementary nature of Brio Nutrition and other potential acquisitions in the pipeline could unlock immediate value beyond the sum-of-parts valuation. In an earlier interview with Proactive, CEO Greg Lambrecht said the company was eyeing three acquisitions, including a manufacturer, distributor, and retailer, totaling $61 million in annual sales.

Well-Positioned for Success

Brio Nutrition’s products will complement 1606 Corp.’s existing smokable CBD products, marketed under the CBD SINGLZ brand. With enough inventory to fill orders for 2,500 retail locations, the company recently hired a direct sales veteran, Brent Duskin, to distribute the products nationwide and drive wholesale revenue for the business.

CEO Greg Lambrecht previously raised $10 million to take a cigar business public on the NASDAQ, growing the business to more than 30,000 accounts before it was acquired. He hopes to accomplish the same with 1606 Corp. in the CBD industry, where CBD SINGLZ fill a key void left by the flavor ban on vapes and tobacco products.

While the company has three acquisition targets in its pipeline now, many more opportunities exist in different markets throughout the country. IBISWorld estimates more than 3,700 CBD manufacturers in the U.S. alone, employing more than 52,000 people nationwide. As a result, there is no shortage of roll-up opportunities to pick from.

Looking Ahead

The CBD industry is poised for rapid expansion over the coming years. With its unique products and roll-up acquisition strategy, 1606 Corp. (OTC: CBDW) could capitalize on these opportunities and generate long-term shareholder value.

For more information, visit the company’s website or download their investor presentation.

Disclaimer

This communication contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. Read our full disclosure at: https://cfnmedia.com/legal-disclaimer/.

1606 Corp. is a client of CFN Enterprises Inc. 1606 Corp. agreed to pay CFN Enterprises Inc. $30,000 beginning on February 15, 2023, for a three-month investor awareness campaign.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

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CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

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